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tv   Mad Money  CNBC  February 24, 2010 6:00pm-7:00pm EST

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welcome to my world. they're nuts. they know nothing. i always like to say, there's a bull market somewhere. "mad money," you can't afford to miss it. hard! hard! to those of you expecting curling coverage tonight, you will be just sore lly disappointed. i'm cramer. welcome to "mad money." trying to entertain you. call me. the most dramatic piece of news today did not come from ben
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bernanke's grilling in front of the house of representatives. bernanke floated like a butterfly. didn't bother to sting at all. it wasn't the skewering of toyota by congress for which the takeaway is quite obvious. keep buys ford and ford preferred. no, none of that. the most sit-up and take notice piece of news today came from dollar tree. which skyrocketed six points, up more than 14% on a day when the dow gained only, well, like 92 points. s&p up a percent. why do we care about a dollar score more than the fed chairman or a huge automaker? first, in full disclosure, my good and plenties of toiletries
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at my local store did not skew the numbers higher. although it didn't subtract from the company's astounds 32% increase in earnings. no. what this number says and what the stox said in reaction to it along with the store's radically high guidance from 2010, is that the consumer, the consumer is bummed and the consumer is stretched. >> the house of pain. >> i tell you, you don't go to dollar tree to feel good about yourself. you go because you have to. present company some might excluded. we have to stick with our trade-down names with the most persistent drum beat coming from tree house, the knock-off food company. and priced a successful secondary offering today. but there's a bigger takeaway
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here. something that can make you money beyond the short-term. our job on "mad money" is to synthesize, yeah, we're back on. to synthesize the news and help you profit from it. more that you get from viewing the olympics, unless you really racking up the loonies watching curling. let's just say we can make some hay on this one. so, hard. left! so, first you have to ask yourself, what does it mean that people are spending more than ever at the dollar store? i mean, isn't that indeed what we call a red flag? when it comes to the health of our economy, but to me, it means interest rates aren't going to go higher anytime soon. now, if you overlay the lesson of dollar tree with the smart fed chairman who just said today he's not about to increase rates, what you get is a vastly reduced opportunity to own
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bonds. gentlemen should not prefer bonds. so many of you are stuck in certificates of deposit or treasuries giving you below 2%. you've got to search for more return. you need more income. bonds don't have it. bonds won't have it. so, where do you get it? dividends. tax blessed dividends. the yield on bonds is not going up any time soon. fed not going to raise. but yields are going up every day in stocks and certainly not because the dividends are staying the same because the share prices are dropping. no way. we are getting gigantic dividend boosts right now. yesterday morning, the hope desk
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spot, judging by the strength of that quarter, there are as many increases coming as there are aisles in their stores. last night, kimberly clarke approved a -- how can can the maker do it? as the ceo told us, the increase is quote, reflect our sand confidence in our business plan and generate strong cash flow. consumers may be lacking in confidence, but there's no lack in confidence in the maker of tissues and diapers. same thing with verizon. it would have no problem taking up its dividend that yields 6.5% right now even as it spends money to build a network to handle millions of i-pads. finally, there's a totally
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politically incorrect altria, almost twice what you can get with the ten-year charity. and much more after the tax shelter. remember, you can take that money that altria pays you for doing nothing and set up a clinic at your local middle school. all that from a six-point run in dollar tree. yes. because stocks speak loudly sometimes and dollar tree's screaming that things just aren't good enough in this economy to raise rates, which would give bonds high yield. and the man who matters, ben bernanke's listening. i wonder if he shops at my dollar tree? >> since we know that bernanke won't raise rates when the economy's weak, you need to look to dividend-paying stocks to get
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yields. i think you should look at kimmerly clarke, verizon and altria. scott in connecticut? >> boo-yah, jim! home of espn. >> it's blacked out in my neighborhood. >> sorry, that's where i live. as an active investor and owner of ford shares and all the problems that toyota is having, is there a play on hyundai motors? >> no, you're not going to go there with korea. there's a korea fund you can own. i'm not going to recommend that. we have one mission in this country when it comes to the automakers. i like the ford preferred. 44 bucks. i think it's going to be called. i got to tell you, malawi watches the show and i believe
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that's going to be called and you'll make a lot of money there. brian in texas. >> jim with a big austin, texas, boo-yah. >> what's up? >> it's awesome. go to one of those games. i want to ask you what you think about walmart. i think they're getting too big for their bri tr britches. >> the ceo was terrific and since he's retired, i can't get behind the stock. i think it's stuck in the mud and i'm not going there to push it out. can i go to rick in kansas. >> a big boo-yah --
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>> that kansas state match -- all over kansas and nebraska. what do you got? >> a week from saturday. >> holy cow. i think that's also on another network that's blacked out in my house. it's tough to get everything other than law and order. go ahead. >> in these time, you've told us to look at dividend stocks and i bought from kinder morgan today. i'm also looking at prospect capital and what's your thought? >> you know what? why go with the second or third best when you have the best? one of the things i've learned is sometimes you say, i need something new and different. you stick with the tide and that's what knp. you've done right. i feel like going to the razor back country. bill in arkansas. >> hey, jim, enjoy your show.
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listen to you from the ozarks. i'm curious whether the level of institutional ownership should be a factor in picking stocks. i own shares of companies that are owned anywhere from 15% to 90% by institutions and just wondered if that should be a consideration. >> i always liked the fact that berkshire hathaway's stock was so rare that it kept out the institutions that like to swap back and forth. i don't like it when a stock has too many hedge funds in it. hedge funds gone wild would strike against certain companies. we have to stay close to a goldman sachs report where they tell you what's overrun by hedge funds. everyone was buzzing about bernanke, toyota and the sec. i was focused on making you mad
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money. i think the most important news today came out of dollar tree and dltr, that is a remarkable, remarkable quarter. what do you think? stay with cramer! coming up, energy boost. could nat gas be the key to jump-starting the u.s. economy or will this bridge fuel fuel out? we're getting answers from colorado senator, mark udall. and going for the gold. cramer's exclusive with agnico-eag agnico-eagle's ceo.
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like it or not, this is a market that's been taken hostage by washington. stocks get hammered over worries about cost. which has the power and the inclination to make or break sectors. if i had a choice, we would never talk politics. but the fact is, politics matters, especially the natural gas stocks. yesterday, we heard from the ceo of chesapeake interest. i've promoted natural gas as a bridge fuel. 30% cleaner than oil. one that could help break dependence on foreign oil and create hundreds of thousands of jobs. we want congress to get behind natural gas. but the coal as the -- the
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sierra coal can cause the deaths of 20,000 people per year. hey, what's real clean, not too good for cars, and coal, which he thinks he can make clean, which would therefore allow batteries in cars to plug into a coal-based system. but there are people fighting for natural gas in washington and one is senator mark udall, a democrat from colorado. udall gets it. he's written a couple of op-eds arguing in favor of net gas. last week, he co-hosted an energy jobs summitt in california. i'm thrilled to have him on the show today. >> thanks for that introduction. you're right. natural gas is a bridge fuel. an enormous resource. we've got to harvest it, produce it and put it to work for us. we're talking about a four-letter word. jobs.
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this is enormous jobs creator. >> one thing that has disturbed me is that it does not seem to be in the discourse any more than before we have 100 years of natural gas. is it possible that congress, the president even, have not caught up with the great advances producing this natural gas? >> certainly, members of the congress have. i'm a part of a coalition that includes john kerry, lindsey grah graham, joe lieberman, senator reid, orrin hatch, lisa mer kous. we can per sue the implementation of the plan. we've endorsed the natural gas bill. also, incentives so the fuel can
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replace base load needs that coal now provides. >> one of the things i am on a mission about, we have the sierra club, the new executive director on. they are just really -- they're the guardians of our air and they just think so strongly that these coal plants that are 40 years old should be shut down. they're so proud they haven't started a new coal plant. why is it their view is not more prevalent in washington? >> jim, that's a fair question. what we want to do is replace those oil coal-fired power plants with cleaner energy. you can do that because of these new gas supplies. right now, the natural gas capacity is only being utilized about about 25%.
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that's the focus of a group of us here in washington. i know you were saying where's the senator, i want to talk to him about natural gas. >> stay with the coal issue. that are 89,000 coal miners in this country. can you talk about the jobs that would be created if we were to shift? >> clearly, there are thousands of jobs that will be produced. we have the big shale place. you talked about the technology, the horizontal drilling that's involved. we believe we have 3,000 trillion cubic feet. not only in the short-term would a lot of jobs becreated, but in the long tomorrow. you make a great point about how clean it is. we want natural gas to compete on a level playing field with coal. >> let me -- i've been toying
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with something. we are building big lng terminals to take in natural gas. these were the legacy before the big fines. what would happen, novel suggestion, if we taxed imported natural gas and then used that tax both to support the idea of having the 18-wheelers driving with natural gas and to help out the darn coal industry if they have to close mines. >> you're right, we made a big investment because we didn't know about the fines. we ought to be considering whether that natural gas could be sent to other countries. i'm a member of the armed services committee and i never want to send our sol soldiers to defend oil lines. >> he's also met with the ceo of
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darko. yet, when i listen to the man, i don't hear -- i hear a lot of different other energies. i never hear natural gas. >> speak to him. we're going to get that in his repertory. >> who's going to win the bet? boone pickens bets me there will be something through congress and i don't think that's reasonable. >> i think that bet will pay off. maybe not on memorial day, so maybe you ought to have an option for a second bet. you know about options. >> sure do. senator udall of colorado, i just got to thank you. thank you for coming on. thank you for being a spokesperson for a fuel that -- be honest. doesn't seem like there's a lot of champions right now. >> we're create ago much
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stronger coalition. i want to come back on the show and we'll talk about the developments that i predict will occur over the next months because opportunities are limited, and to be energy secure. this is our chance. this is the time. we've been given this opportunity. >> amen. you are terrific and you will be back. >> thanks, jim. i enjoyed it. >> senator udall gets it and i got to tell you, we did have a hard time trying to find some senators. i bet there's more lurking. we're going to keep bringing them on. why? because the stocks have been winners. coming up, going for the gold. is this elemental asset the next bubble to burst or is it your path to prosperity? cramer's exclusive with agnico-eagle's ceo. and e-mail us and jim could
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answer you on the air on an all new "mad mail." all coming up on "mad money."
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we're big believers in
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insurance on "mad money." you wouldn't drive a car without car insurance and you shouldn't own stocks without portfolio insurance and in cramerica, that insurance is gold. gold also gets a boost thanks to increased jewelry demand from growing middle classes and countries around the world who know that the foundation of capitalism is con sums. tonight, we're doing some comparison shopping. ordinarily, i tell you the best way to buy gold is with the etf. or you could buy gold coins or bouillon and put the medal in a bank. now, in the past, my favorite mining stock used to be agnico-eagle because of its
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incredible and consistent increases in production. over the last five years, get this. this stock is up 281%. that outperforms the gld, up 148%. it also outperforms every other producer, too. but over the last year and the last three years, the stock's underperformed. why? in the third quarter of 2009, agnico-eagle was the poster child for everything that could go wrong with a gold miner. the company hit a lower grade of work. that made me think it might be too dangerous to own agnico-eagle, but last wednesday, the company reported a better than expected fourth quarter. i feel confident that the problem seemed to have been dealt with. if that's the case, then agnico-eagle might be the best way to buy gold.
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the company has shown us all the things that could go wrong. but now, it could be poised to show us what could go right. the quarter was good. as well as record production. but it's future is looking even better. company's expected to double production over the course of 2010 as the new mines should start protection this year and some are ramping. in the past, the ceo has promised to raise the dividend. that would make owning the stock more rewarding. has agnico-eagle gotten back on track? is this the best way to play gold and should we expect gold prices to act well going forward? let's hear from sean boyd, the ceo. the company had a hard time. we know that because the stock is underperformed, but because
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you've admitted it. do you feel confident telling our viewers those hard times are now in the past? >> i do. as we explained last time we were on and went through the third quarter, i lot of those issues related to building five mines at a time. the way we look at it, not only have we built a quality gold company, but the company was really focused on building a quality business and equity. as we move forward now that these mines are built, inherit optimization, you remove some of that volatility that you get when building five mines from scratch at the same time. >> so you maybe think that you just did take on too much at one time? >> we had the skills to do it, but it was one of these things where in the third quarter, several things happened at the same time. if we were to do it over again, we would have done it the same
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way because the alternative for us five years ago was to merge with another similar sized company. we chose to go it buy buying the smaller it was e opportunities. the deposits we decided to build -- what's happened, not only are we in position to grow the out put this year, but reserves have grown dramatically in these deposits and that's the future. >> i congratulate you on the $299 cost. frankly, i'm not that familiar with a lot of these canadian brokers. but all the research indicates that you're about to jump in cost to about $399. why that 399 figure?
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do you endorse that or is that just the brokers? >> in december, we put out an estimate of 390 going forward. that's based on certain assumptions on by product. we produce a lot of silver and zinc. if we were to take the current prices, our costs would be more on the line of 350 to 360 an ounce, which is well below the industry average. >> exactly. i urge people, just look at the metrics. you'll see the majors have much higher prices. how about this dream sequence. this bank has got to be one of the most exciting mines in the world. you've got the infrastructure all built. is there a chance that the oar grade is so high that you would be making more money nex time we see you? >> we just started that mine and
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what we saw this year in our update of last week was we saw a dramatic increase in the size of that deposit. the contained gold in that enter up to 7.7 million ounces. it's our biggest single producer. we've dramatically grown the reserve and resource base by 38% and even though we're starting it now, we've also got an expansion study underway at that deposit. we think we can grow the output there. it will be a mainstay for us for several years. >> when i tell people to buy a gold stock, i usually do not put a reference to the price of gold or the season. yet, somehow, gold seems to be seasonable. i see march as a period where gold stocks go down and they go down again in the summer. is that just my extrapolating a rule so to speak, or are there seasons where gold stocks have
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underperformed? >> in the past, it's been more pronounced than now because in the past, a big part of the demand equation was jewelry, and that can be seasonal. but now, we've seen investment demand roor ahead. when people look to diversify their portfolios, they're looking to gold. it's not just investors. it's central banks, that for the first time last year, were net buyers of gold. i think that's going to continue. >> reminds me of lords of finance. a fabulous book where the central bankers in europe felt they had to come to america to buy our gold. it's happening again. thank you so much for coming on the show. >> guys, there's a surprise coming. i didn't get to ask about the dividend. this is the one. i'm circling back to agnico-eagle. you should, too. coming up, ride the
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lightening. take a non-stop thrill ride as cramer goes stock after stock. all your calls taken rapid fire on the lightening round. and cramer checks his in-box on "mad mail."
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it's been ages since i've done one. i know. it's time for the lightening round. you say the name, i tell you. hear this sound, round is over. what do i say before it starts? are you ready? francesca? >> good afternoon, mr. cramer. i love your show. >> thank you. >> mr. head ner sold his entire position in nly from the cgn reality fund two months ago in december. >> he has been the ice man. i mean, the guy should be in
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vancouver. he should be, you know, bobsledding. here's the problem. i feel -- i think the stock's a good one. there was this cross fire debate in where we had a bull and a bear and everyone always asked me what i think about it. you know what? it's okay. if the fed starts raising rates quickly, it's no good. how about steve in tennessee? >> a boo-yah from the volunteer state of tennessee. >> i love your programs. what's up? >> hey, jim, the symbol, jpm. jpmorgan chase. >> jamie dimon's the best banker in america. let me tell you a quick story. i did have a machine eat my atm card when i was in mexico and you know what? within 30 minutes, 30 minutes, i was able to cancel it, kill it,
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do whatever i wanted. the guy who stole it is feeling bad. and a replacement card when i got back. they've got the best balance sheet. if the president would start focussing on something else other than the banks, i say jpmorgan goes to 50. jamie dimon, i trust. how about arthur in new york? boo-yah. holy cow. very hard on options. go ahead. >> like to know what you think about kirkland industries? >> the specialty retailer? retail's too high. if i'm going to do anything involving home, i'm just going to recommend home depot. let's go to dana in california. >> hey, jim, a curious and
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logical boo-yah to you. i was just wondering is there any correlation between a al pacinos boo-yah and yours? >> now, here's the thing. what's the stock? avav. >> we like drones. but they got a lot of different ver versions. we liked it high. we say get out. now, it's lower. i'm staying away from that stock. let's go to barren in north carolina. >> a big boo-yah, jim! >> went from a duke to a bear. >> i just want to let you know i subscribed to at
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the first of a year. it's great. >> it's my blog. go ahead. >> on tax season, i was wondering about your opinion on into it. >> i can't make myself more clear than that. how about bonnie in illinois. >> here's a big amazon boo-yah to you. >> i think amazon is a winner. now, i know you can say wait a second, cramer, you liked it at 130. also at 60. do i have 110? i like the stock right here. it's a winning stock. it just doesn't -- it goes up big and then it takes profits. like my friend. apple. joey in california. joey?
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>> big boo-yah from so-cal. >> all right. good to have you. what's on your mind there, chief? >> i got a little question about uis. they got a good write-up about the stock being too cheap. i have a feeling it might be a really good takeover target. >> well, you know, this one's going take over target. when it used to be a member of the bunch. oh, boy, ncr control data. man, am i old. now, here's the thing. the stock had the split. it's gone back and forth. i am in the don't buy. i got emc. i got cisco. intel. unbelievable quarter. it's 11 times earnings. i need to go to my old home state. john in pennsylvania. john? >> this is john from pennsylvania. giving jim cramer a philadelphia
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e eagles, we're going to miss brian west brook, boo-yah. >> contacted by daughter within a second of it happening, number 36 stepping down. a great man. villanova graduate, just a great man. he's terrific. how can i help? >> citigroup. >> i told people to get out at five. right? and now, it's back. we're not going to go through the secondary. i still want to buy citi. i think vikram pandit is a good man. i stand with vikram. i stand with cramer. stay with "mad money."
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remember mad mail? dear, jim. could you comment on the sec vote today? just window dressing. from the beginning, they were talking about it. here's what you would do if you were a bad guy. this is no what i would do. this is what they will do. knock it down 10%, the next day, another 10%. next day, another 10%. do these people know what goes on? not only that, they're not going after the people who do naked short-selling. i literally would have told them, what the bad guys do.
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any way, they never cease to a maze me. here's one from lou. jim, congrats on the new "mad money" high noon show. it looks like another winner for you in home gamers. last year you told home gamers to sell and got approval from the fda. >> we did say dendrom was a long-term buy. the stock has gone up since, and we also mentioned it was great speculation. as far as "mad money" high noon, there are two more days of "mad money" high noon. here's one from mark. jim, boo-yah from sin city. i love your show and appreciate what you do for us novice investors. your push to get the word out
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about natural gas as a bridge fuel should be commended. with the president's recent announcement on loans to help fund two nuclear reactors, where does the gas stand? here's where natural gas stands. it stands absolutely nowhere. why is that? because the president is not behind it. we are not detered by the fact that no one else is in favor of it. ethanol does not produce real energy we need. natural gas, how about the canadians? they're now exporting natural gas. we're going to have to do the same thing. why? because our country doesn't endorse it. can you imagine when we export energy how embarrassing that's going to be because we're so busy building wind mills? and i have nothing against windmills. jim, your show is great -- thanks for the education. i'm up about 25% on hd and i'm
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up in a lot of other stocks because of what i learned from you. it seems like i added some debt lately. should i grapple with it or get something else? >> i like yields that grow. in other words, the dividend goes higher. that doesn't have it. here's one from steven. hi, jim. i have been holding brocade communications. they recently reported weakness in their ethernet. steven, the door has been open and already trampled. when we're up to 8 on speculation, we thought it was time to ring the register. at these prices i would not sell the stock. here's one from danny in phoenix. jim, i have been in smith international for over six months now. i bought it in 2007. should i wait for the deal or
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take my profits now? are you kidding me? ring the register. wikipedia, no thank you, i don't like that. what do i like as the next one? i like weather for wfd. i think that's a go. sorry about transocean. i was surprised they had so many cancellations. "mad money" is back after the break.
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i was just in town for a few days, and i was wondering if i could say hi to the doctor. is he in? he's in copenhagen. oh, well, that's nice. but you can still see him! you just said he was in... copenhagen. come on! that's pretty far.
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doc, look who's in town. ellen! copenhagen? cool, right? vacation. but still seeing patients. oh. [ whispering ] workaholic. i heard that. she said it. i... [ female announcer ] the new office. see it. live it. share it. on the human network.
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actions speak louder than words, we all know that. and the action in j.p. morgan and the action in goldman sachs both up today. tell me the word of the president sticking by the vocal rule, it's not going to happen. the vocal rule was designed, if you ask me, to hurt the earnings of goldman sachs and j.p. morgan. the only way to win was to bring in the people from lehman brothers and ask what they did wrong and then put a rule in against them. catch us tomorrow at noon and
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11:00 p.m. eastern on cnbc. of course, we can always be heard on cnxn radio, your local twitter, facebook and every place else in the world. i'm jim cramer. welcome back. see you tomorrow.
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